Performance Analysis of Global Exchange Traded Funds in India

Nindu Priya Laxmi S B N, Asok Kumar N

Abstract: Exchange Traded Funds (ETFs) are basket of securities which can be bought and sold in the stock market, just like any other stocks or shares. Most of the ETFs track an index or a commodity or a sector. ETFs are attractive as an investment because of their low costs, tax efficiency, and stock like features. In Indian markets ETFs just started to become popular. Over the last few years Indian ETFs have seen a volume growth, most of it going towards Nifty50 ETFs.
Global Exchange traded funds are simple investment products that allow the domestic investors to take an exposure to international indices. Nowadays, investors approaching the global market for better returns. Indian ETF market is still evolving, there are only a few international ETFs available. This study aims to examine the performance of selected Global Exchange Traded Funds compared to other ETFs in the market. In our analysis, the Sharpe, Treynor and Jenson ratios are used as risk-adjusted performance measures also evaluates their performance using Data Envelopment Analysis (DEA).